How to fill out an SBA loan forgiveness application

While Form 3508S does not require any specific documentation, the SBA may request verification to approve loan forgiveness. There are several ways that you can verify that your organization spent the loan funds on qualifying business expenses. 

Verified payroll expenses

In order to verify that your company spent the PPP loan funds you want to have forgiven on payroll expenses, you may be asked to provide:

• Bank statements
• Documentation from your payroll company showing payments to employees
• Reported payroll tax filings (Form 941)
• State quarterly wage reporting for businesses and individuals
• Tax filings for unemployment insurance
• Employer contributions to group employee benefits (payment receipts, canceled checks of bank statements)
• Equivalent payroll provider reports for the above

Verified non-payroll expenses

Because PPP loans could be used to cover payroll or other qualified business expenses, the SBA may ask that you include documentation of those expenses when using Form 3508S to apply for forgiveness. These expenses may include:

• Business mortgage interest payments
• Business rent or lease payments
• Utility payments for the business, including internet, electricity and gas
• Certain operations expenditures
• Certain supplier costs
• Property damage costs, if covered
• Worker protection expenditures, if covered

The types of documents that may provide proof of these expenses during the covered timeframe include:

• Invoices
• Amortization schedule and receipts
• Mortgage statements
• Rent or lease agreements with receipts
• Contracts, orders or purchase orders